116 STAT. 42 PUBLIC LAW 107-147—MAR. 9, 2002 (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: "(3) QUALIFIED FOSTER CARE PLACEMENT AGENCY.— The term 'qualified foster care placement agency' means any placement agency which is licensed or certified by— "(A) a State or political subdivision thereof, or "(B) an entity designated by a State or political subdivision thereof, for the foster care program of such State or political subdivision to make foster care payments to providers of foster care.". Applicability. (d) EFFECTIVE DATE. —The amendments made by this section 26 USC 131 note, shall apply to taxable years beginning after December 31, 2001. SEC. 405. INTEREST RATE RANGE FOR ADDITIONAL FUNDING REQUIREMENTS. (a) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986. — 26 USC 412. (1) SPECIAL RULE. — Clause (i) of section 412(1)(7)(C) (relating to interest rate) is amended by adding at the end the following new subclause: "(III) SPECL\L RULE FOR 2002 AND 2003.— For a plan year beginning in 2002 or 2003, notwithstanding subclause (I), in the case that the rate of interest used under subsection (b)(5) exceeds the highest rate permitted under subclause (I), the rate of interest used to determine current liability under this subsection may exceed the rate of interest otherwise permitted under subclause (I); except that such rate of interest shall not exceed 120 percent of the weighted average referred to in subsection (b)(5)(B)(ii).". (2) QUARTERLY cONTRiBUTiONS.^^ubsection (m) of section 412 is amended by adding at the end the following new paragraph: "(7) SPECIAL RULES FOR 2002 AND 2004.—In any case in which the interest rate used to determine current liability is determined under subsection (l)(7)(C)(i)(III)— "(A) 2002. —For purposes of applying paragraphs (1) and (4)(B)(ii) for plan years beginning in 2002, the current liability for the preceding plan year shall be redetermined using 120 percent as the specified percentage determined under subsection (l)(7)(C)(i)(II). "(B) 2004. —For purposes of applying paragraphs (1) and (4)(B)(ii) for plan years beginning in 2004, the current liability for the preceding plan year shall be redetermined using 105 percent as the specified percentage determined under subsection (l)(7)(C)(i)(II).". (b) AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECU- RITY ACT OF 1974. — (1) SPECIAL RULE. —Clause (i) of section 302(d)(7)(C) of such Act (29 U.S.C. 1082(d)(7)(C)) is amended by adding at the end the following new subclause: "(III) SPECIAL RULE FOR 2002 AND 2003. —For a plan year beginning in 2002 or 2003, notwithstanding subclause (I), in the case that the rate of interest used under subsection (b)(5) exceeds the highest rate permitted under subclause (I), the rate of interest used to determine current
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